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  • Writer's pictureDaniel Rascon

Best Ways to Save for a Down Payment in Miami-Dade

Updated: Jan 28, 2021

The most common concern potential home buyers have is the down payment necessary to purchase a home. The idea of saving 20% of a home's value is daunting. While saving the money might take some planning, the good news is, with careful attention to that goal, saving for a down payment might be easier than you think and take less time than imagined.

How Much Down Payment Do I Need to Buy a House in Miami?

Prior to the mortgage meltdown, anyone could get a home loan with 100% financing. While those risky mortgage programs have disappeared, not every loan requires 20% down either. Some lenders offer conventional loans requiring down payments as low as 5%. Credit worthiness plays a role in the options available to you so speaking with a lender is important.

Additionally, there are some special loan programs for those who qualify. First time home buyers can purchase a property with as little as 3.5% down using FHA financing. Veterans and qualifying military members can use special VA financing, allowing them to buy a home with no money down.


Top Tips on Ways to Save to Buy your Future Home

Once you determine how much down payment you'll need, it's time to assess your current situation. What cash is available to you right now? How can you make adjustments to your monthly budget to help save more if needed and find other ways to build a down payment? Here are some tips:

  • Create a Budget (AND KEEP IT) - Eliminate extra expenses such as expensive coffee or dining out on the weekends.

  • Save Aggressively - Set a monthly savings goal and stick to it.

  • Hold a Garage Sale - Sell items that no longer serve a purpose. It's a great way to accumulate extra money and you'll see items you no longer need go to buyers who will appreciate them like you once did. Are you funding pet projects like restoring a vintage car or starting a collection of valuables? Perhaps it's time to sell those assets and put the funds toward your upcoming down payment.

  • Consider Your 401k* - Most programs allow you to withdraw or borrow from your 401k without penalties to purchase a home.

  • Ask Family Members - Some loan programs, such as FHA loans, allow for your down payment to be a gift from family. With loans available for as little as 3.5% down, you might find that you can get help from family.

  • Grants and "Silent Seconds" - In some cases, down payment assistance programs can be used for the loan. Certain state and local programs, as well as employment or union-based programs, can help you obtain the down payment.

  • Grants are outright gifts and typically are offered in exchange for spending time as a local teacher, law enforcement officer or other community-specific need.

  • Silent Seconds are second mortgages which are used as the down payment for a conventional or FHA loan. These loans accumulate interest costs but require no payment and are not due until/unless the home is sold or refinanced.


Buying a home is a great way to build financial and family security. Finding the down payment might not be as difficult as you think. Watch for extra unnecessary expenses and place a priority on accumulating the needed funds. Meet with a lender and create a plan, and you'll find that saving could be easier than you imagine, allowing you to reach your goal of home ownership faster than you thought possible.

Click here to Contact me today and take advantage of the knowledge and experience of the representatives at Capital Partners Mortgage, our Family of Services division partner. They are ready to meet with you, go over options available to you, and help determine your readiness for home-ownership!

*This article is for informational purposes only and nothing contained should be considered tax advice. Please consult your tax professional for information regarding your specific tax situation.

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